DHS awards $65.7M for TVS System O&M and Development to Peraton Inc
Contract Overview
Contract Amount: $65,739,621 ($65.7M)
Contractor: Peraton Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-09-12
End Date: 2020-05-11
Contract Duration: 242 days
Daily Burn Rate: $271.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $65.7 million to PERATON INC. for work described as: SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD Key points: 1. Contract awarded to Peraton Inc. for software O&M and development. 2. The contract value is $65.7 million. 3. The service falls under Computer Systems Design Services (NAICS 541512). 4. Awarded under full and open competition. 5. The contract duration is 242 days.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value of $65.7 million for a 242-day period suggests a significant per-day expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. However, the Time and Materials pricing structure may limit the effectiveness of competitive bidding in controlling final costs.
Taxpayer Impact: Taxpayer funds are being used for essential software operations and development for CBP/PSPD. The cost-effectiveness depends on the successful delivery of services within the awarded budget.
Public Impact
Ensures continued operation and enhancement of the TVS system for U.S. Customs and Border Protection. Supports critical border security and trade facilitation functions. Potential impact on efficiency and effectiveness of CBP operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can inflate costs.
- Short contract duration may indicate a need for follow-on work or a specific project phase.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar IT O&M and development contracts vary widely based on system complexity and scope.
Small Business Impact
The contract was awarded to Peraton Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard oversight mechanisms for IT service contracts should be in place.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of small business participation.
- High daily expenditure rate.
- Short contract duration may indicate future funding needs or limited scope.
Tags
computer-systems-design-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $65.7 million to PERATON INC.. SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $65.7 million.
What is the period of performance?
Start: 2019-09-12. End: 2020-05-11.
What specific enhancements or O&M activities were included in this contract, and how do they align with CBP's strategic technology goals?
The contract details for specific enhancements and O&M activities are not provided in the data. However, the TVS system likely supports critical functions for CBP, such as trade processing, cargo screening, or border enforcement. Understanding the alignment with strategic goals would require access to the contract's statement of work and CBP's technology roadmap.
Given the Time and Materials pricing, what measures were in place to control costs and ensure value for money throughout the contract period?
While the data indicates a Time and Materials (T&M) contract, it doesn't specify the cost control measures. Typically, T&M contracts include labor hour limitations, fixed-price components for specific tasks, or stringent oversight to monitor hours and rates. The effectiveness of these measures would depend on the government's project management and surveillance.
How does the $65.7 million award for a 242-day period compare to industry benchmarks for similar software development and O&M services?
The award of approximately $65.7 million over 242 days equates to roughly $271,651 per day. This daily rate is high and would need to be benchmarked against specific IT services, labor categories, and the complexity of the TVS system. Without more detailed information on the scope of work and labor mix, a definitive comparison to industry benchmarks is challenging.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Veritas Capital Fund Management, L.L.C.
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,739,621
Exercised Options: $65,739,621
Current Obligation: $65,739,621
Subaward Activity
Number of Subawards: 126
Total Subaward Amount: $38,207,406
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSHQDC14DE2035
IDV Type: IDC
Timeline
Start Date: 2019-09-12
Current End Date: 2020-05-11
Potential End Date: 2020-05-11 16:38:56
Last Modified: 2023-07-17
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